Bart and Matz Quoted on the Tax Complications of Trump Accounts
The Washington Post
AFS Partners Susan Bart and Kevin Matz were quoted on the emerging gift tax reporting issues tied to new “Trump Accounts,” cautioning that routine family contributions could trigger onerous IRS Form 709 Gift and Generation-Skipping Transfer Tax filing obligations absent a legislative or regulatory fix comparable to the long-standing relief afforded to 529 plans.
Susan said, “If you want to apply for the $1,000 because your kid was born within the time period, fine. If your employer wants to make a contribution or you qualify for a contribution from a charitable organization … fine. But don’t put your own money in until this is clarified.”
Under current law, personal contributions to Trump Accounts are potentially treated as taxable gifts without present‑interest treatment, so even small deposits could trigger a Form 709 filing requirement. Susan warned, “Form 709 is not a DIY form by any means,” noting that even sophisticated professionals can be tripped up by its generation‑skipping and gift‑splitting rules.
Kevin also cautioned, “Not all accountants necessarily have the experience and background to be able to complete it without extensive study.” Kevin also noted, in his role as Chair of the Washington Affairs Committee of The American College of Trust and Estate Counsel (ACTEC), that ACTEC has asked Congress to adopt a fix similar to 529 plans so routine family contributions would not trigger Form 709 filing obligations. ACTEC’s comment letter that addresses this and certain other issues under the One Big Beautiful Bill Act, H.R. 1, can be found here.
Kevin noted that, to date, ACTEC has only received acknowledgments of receipt on its comment letter and has not yet received any substantive responses.
Read the full article in The Washington Post.
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